India’s Gendered Cap Table, RentoMojo’s IPO Journey, and Forest Essentials Gets Acquired

India likes to celebrate its women founders. The stories of Nykaa, Mamaearth and a handful of other breakout companies often dominate conference panels and investor decks. But behind these success stories lies a stubborn statistic that tells a very different story about capital allocation in the startup ecosystem.

In India’s venture economy, women founders receive roughly ₹4 out of every ₹100 of venture capital raised. The number has barely moved over the past decade, even as the country has produced more than 7,000 women-led startups and one of the world’s highest shares of women among STEM graduates.

This gap is often framed as a diversity issue. In reality, it may be a much larger capital-allocation problem.

The funding funnel itself is revealing. Women founders appear in growing numbers at the early stages of the startup pipeline. Seed rounds, accelerators and angel networks have gradually become more inclusive. But the drop-off becomes severe as startups move toward larger Series B and growth rounds. By the time big institutional capital enters the picture, more than 90% of the funding value still flows to all-male founding teams.

Sector dynamics reinforce the imbalance. Most of the well-known women-led startups in India have emerged from consumer categories such as beauty, personal care and e-commerce. These sectors produced the high-visibility successes that shaped the narrative around women entrepreneurs. But in capital-intensive domains like deep tech, AI infrastructure and enterprise SaaS, women founders remain significantly underrepresented and underfunded.

Part of the explanation lies inside venture capital firms themselves. Women now represent a growing share of junior roles in VC firms, with roughly 38% of analysts being women. Yet at the partner level, where investment decisions are actually made, representation drops to around 16%. The result is a classic gatekeeper problem: the people writing the largest cheques remain overwhelmingly male.

Behavioral research adds another layer to the puzzle. Studies show that investors tend to ask male founders “promotion” questions focused on growth and upside, while women founders are more often asked “prevention” questions about risks and downside scenarios. The framing itself influences outcomes, because founders answering growth-oriented questions tend to raise significantly more capital.

Ironically, evidence suggests that women-led startups may actually be undervalued opportunities. Several studies show that companies founded by women often generate higher revenue per dollar of capital raised and build more resilient businesses with stronger governance and lower burn.

If that pattern holds, the ₹4 problem is not just an inclusion gap. It is a mispricing of entrepreneurial talent.

Correcting it will require more than symbolic gestures. More women partners in VC firms, stronger LP pressure for diversity metrics, and gender-aware capital allocation from institutions like SIDBI could gradually shift the balance. If the ecosystem moves from ₹4 to even ₹15 per ₹100 by the end of the decade, it would not only change representation, but would reshape how capital flows through India’s startup economy.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Sapne Dekhe Bade Bade”: RentoMojo Kicks Off IPO Journey, Converts Into Public Company

Furniture and appliance rental startup RentoMojo has converted into a public limited company, marking the first formal step in its IPO journey.

The move comes months after it renamed its parent entity from Edunetwork Private Limited to Rentomojo Private Limited in September 2025. With the structural shift complete, the startup now appears to be laying the groundwork for a potential public listing later this year.

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“Waah Kya Scene Hai”: PhonePe Eyes $10.5 Bn Valuation For IPO Next Month

Digital payments giant PhonePe is reportedly eyeing a $10.5 Bn valuation as it prepares to launch its IPO as early as next month.

The Walmart-backed firm could raise between $900 Mn and $1.5 Bn through the listing, depending on market conditions. However, analysts remain cautious as rising losses cast doubts on how well it can monetize its UPI dominance.

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“Hum Saath Saath Hai”: MakeMyTrip To Acquire Majority Stake In Flamingo Transworld

Online travel platform MakeMyTrip is set to acquire a majority stake in tour operator Flamingo Transworld to expand its holiday packages business.

The deal is currently subject to certain closing conditions. Flamingo Transworld offers domestic and international group tours and has a strong presence across western and central India.

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“Janmo Ke Saathi”: Estee Lauder to take full ownership of Forest Essentials

US beauty giant The Estée Lauder Companies has signed an agreement to acquire the remaining stake in luxury Ayurvedic skincare brand Forest Essentials, taking full ownership of the company.

Estée Lauder already held a minority stake and will now buy out the remaining shares from existing investors. The deal’s financial details remain undisclosed and is expected to close later this year pending regulatory approvals.

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1. InfinityBox has raised ₹14.1 Cr in a Pre-Series A round led by Rainmatter, with participation from AAR EM Ventures and Capital-A. The round was completed through the issuance of preference shares, according to regulatory filings.

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2. Battery Smart has kicked off its pre-Series C funding round, with investors including Acacia Inclusion, Blume Ventures, and PC-SBI Kurashi Visionary Fund already putting in over $7 Mn. The startup has allotted 12,158 compulsory convertible preference shares at ₹54,407 each.

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